British Sky Broadcasting has said it will surpass its target of signing up five million subscribers by year end, but the UK pay TV operator has paid the price with another bout of losses in the first quarter.

BSkyB, 37.5 per cent owned by Mr Rupert Murdoch's News Corp, said it had signed up 4.72 million customers by the end of September, including 4.08 million for its digital service, and had reached 4.95 million sales as of Thursday.

Pre-tax losses widened to £123.6 million sterling (€207.1 million) in the three months to end-September, from £13.6 million a year earlier, but analysts noted the core business was performing well and revenue per subscriber was rising.

BSkyB's chairman, Mr Murdoch, hinted the group, which has posted six successive quarterly losses and suspended its dividend last year, would return to profitability by the time it reaches seven million subscribers - its goal for the end of 2003.

"It's remarkable what we've achieved since the company was bankrupt 10 years ago," Mr Murdoch said.